The US dollar on Friday rose to a two-decade peak against the yen and kept close to a two-year high to the euro, as more hawkish comments from US Federal Reserve officials reinforced expectations for faster US policy tightening.
The greenback rose 0.43 percent to ￥126.40 after earlier reaching ￥126.56 for the first time since May 2002.
The euro slipped 0.14 percent to US$1.0812, heading back toward the overnight low of US$1.0785, a level unseen since April 2020.
In Taipei, the New Taiwan dollar on Friday fell against the greenback, losing NT$0.114 to close at NT$29.118, down 0.7 percent for the week.
New York Fed President John Williams on Thursday said that a half-point rate rise next month was “a very reasonable option,” in a further sign that even more cautious policymakers are on board with faster monetary tightening.
By contrast, European Central Bank (ECB) President Christine Lagarde at about the same time said that there was no clear time frame for when ECB rates would start to rise, adding that it could be weeks or even several months after the central bank winds down its stimulus scheme in the third quarter.
“Williams spoke openly of the need to move rates more swiftly and above neutral,” further buoying the US dollar, Westpac Banking Corp macro strategist Tim Riddell wrote in a client note.
By contrast, the ECB “revealed a more dovish reaction function to the inflation news than the market had discounted,” he said.
US Treasury yields resumed their climb overnight, following a two-day decline, further buoying the greenback. Treasuries did not trade in Tokyo on Friday because of the Good Friday market holiday in the US, as well as other regions including Australia, Hong Kong and the UK.
The US dollar index rose 0.08 percent to 100.48, edging back toward the two-year high of 100.78 reached on Thursday.
For the week, it has climbed 0.64 percent, while the euro has dropped 0.58 percent.
Against the yen, the US dollar climbed 1.71 percent, posting a sixth straight winning week.
Japanese Minister of Finance Shunichi Suzuki on Tuesday said that the government is watching yen moves and their impact on the economy “with a sense of urgency.”
“Despite repeated verbal intervention over the past few weeks from Japanese policymakers, USD/JPY has continued to rise alongside higher US yields,” Goldman Sachs analysts wrote in a note.
Cryptocurrency bitcoin continued to consolidate close to a four-week low of US$39,218.15 reached on Monday, last changing hands at US$40,005.50.
“Bitcoin is in the danger zone as risky assets are tumbling as the bond market selloff resumes,” Oanda Corp senior market analyst Edward Moya wrote in a note. “If it breaks below US$38,000, it could get ugly real fast.”
Additional reporting by CNA, with staff writer
When an apartment comes up for rent in Germany’s big cities, hundreds of prospective tenants often queue down the street to view it, but the acute shortage of affordable housing is getting scant attention ahead of today’s snap general election. “Housing is one of the main problems for people, but nobody talks about it, nobody takes it seriously,” said Andreas Ibel, president of Build Europe, an association representing housing developers. Migration and the sluggish economy top the list of voters’ concerns, but analysts say housing policy fails to break through as returns on investment take time to register, making the
NOT TO WORRY: Some people are concerned funds might continue moving out of the country, but the central bank said financial account outflows are not unusual in Taiwan Taiwan’s outbound investments hit a new high last year due to investments made by contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and other major manufacturers to boost global expansion, the central bank said on Thursday. The net increase in outbound investments last year reached a record US$21.05 billion, while the net increase in outbound investments by Taiwanese residents reached a record US$31.98 billion, central bank data showed. Chen Fei-wen (陳斐紋), deputy director of the central bank’s Department of Economic Research, said the increase was largely due to TSMC’s efforts to expand production in the US and Japan. Investments by Vanguard International
WARNING SHOT: The US president has threatened to impose 25 percent tariffs on all imported vehicles, and similar or higher duties on pharmaceuticals and semiconductors US President Donald Trump on Wednesday suggested that a trade deal with China was “possible” — a key target in the US leader’s tariffs policy. The US in 2020 had already agreed to “a great trade deal with China” and a new deal was “possible,” Trump said. Trump said he expected Chinese President Xi Jinping (習近平) to visit the US, without giving a timeline for his trip. Trump also said that he was talking to China about TikTok, as the US seeks to broker a sale of the popular app owned by Chinese firm ByteDance Ltd (字節跳動). Trump last week said that he had
STRUGGLING TO SURVIVE: The group is proposing a consortium of investors, with Tesla as the largest backer, and possibly a minority investment by Hon Hai Precision Nissan Motor Co shares jumped after the Financial Times reported that a high-level Japanese group has drawn up plans to seek investment from Elon Musk’s Tesla Inc to aid the struggling automaker. The group believes the electric vehicle (EV) maker is interested in acquiring Nissan’s plants in the US, the newspaper reported, citing people it did not identify. The proposal envisions a consortium of investors, with Tesla as the largest backer, but also includes the possibility of a minority investment by Hon Hai Precision Industry Co (鴻海精密) to prevent a full takeover by the Apple supplier, the report said. The group is
RSS